Kapalua Golf Villas Update
March 2016
LOCAL MAUI NEWS
Aloha Kapalua Golf Villa Owners!

Local boy, former NFL lineman Maake Kemoeatu, who is bringing the popular fast-food chain Sonic Drive-In to Hawaii, has recently started another company with his brother Chris, also a former NFL player, to bring a Professional Rugby Team to the state.  Kemoeatu's North Shore Provisions LLC will bring seven Sonic Drive-In restaurants to the Islands and Kemoeatu International LLC was formed to bring a pro rugby team to Hawaii.    House Bill 1847 is currently making its way through the Hawaii Legislature, looking to create a Sports and Entertainment Authority for Hawaii.  National sports industry visitor spending totaled $8.9 billion last year.  The bill looks to build upon the success of past events; Ironman World Championship, Honolulu Marathon, NFL Pro Bowl, PGA Tour's Sony Open and more.  They also want to create world class training facilities for amateur and professional athletes across many sports.
  
Four thousand meters below sea level off Mokumanamana, scientists discovered what researchers with the National Oceanic and Atmospheric Administration (NOAA) are calling the deepest dwelling octopus ever discovered.  It lacks pigment cells and has been nicknamed "Casper" on social media.    Ivory is sold as jewelry or other hand-carved items in the Islands.  The sale of ivory is already illegal under federal law, but once ivory enters the United States interstate trading is beyond federal remit.  The Hawaii Wildlife Coalition is encouraging legislators to pass a bill to prohibit wildlife trafficking in the state.  Hawaii was the 3rd largest market in the US behind New York and California, however those 2 states recently passed sales bans which could put Hawaii at risk of becoming #1.  Hawaii's location also makes it a hotbed for sales, since China is the top country for ivory sales.
       CURRENT MARKET ANALYSIS
"Home prices are rising three to four times faster than wages while credit conditions are loosening", according to Lawrence Yun chief economist for the National Association of REALTORS.  The words "housing bubble" have started popping up ... but they shouldn't.  Even though credit conditions are easing somewhat, the move is from overly stringent conditions to not-so-overly-stringent conditions.  And while home prices are rising above wages, low mortgage rates have been a silver lining.  And while inventory is indeed low, sales aren't moving at the same pace.  Limited supply of homes for sale is what 's mostly behind the latest home-price increases nationally.

So how did Maui home sales do last month?  Sales of single-family homes on Maui soared 15% to 69 homes sold, compared to 60 homes sold in February 2015. The median price of a single family home was $595,000, a 96.5% increase from $558,625 in February 2015.  Condominium sales on Maui rose by 7.3% to 102 units sold in February, from 95 units sold during the same month a year ago.  The median price of a Maui condo last month was $444,450, which was a 6.4% decline from $475,000 during February 2015. 

Let's take a look the Golf Villas:

Status
Unit
Bd
Ba
 List $
 Sold $
Close
ACTIVE
14V2
1
1.5
595,000
ACTIVE
26V-1
1
1.5
650,000
ACTIVE
20V-1
1
1.5
660,000
ACTIVE
19V1
1
1.5
795,000
*ACTIVE
18T3,4
1
2
599,000
ACTIVE
15T5-6
1
2
699,000
ACTIVE
16T5-6
1
2
730,000
ACTIVE
27T5-6
1
2
735,000
ACTIVE
27T1-2
1
2
755,000
*ACTIVE
17T7
1
2
759,000
ACTIVE
22T5-6
1
2
785,000
*ACTIVE
15V3
1
2
795,000
ACTIVE
23P1-2
2
2
849,995
ACTIVE
14P12
2
2
850,000
ACTIVE
21P7-8
2
2
919,000
*ACTIVE
24P1,2
2
2
925,000
ACTIVE
24P7-8
2
2
935,000
ACTIVE
14P7-8
2
2
950,000
ACTIVE
11T2
2
2
975,000
ACTIVE
27V2
2
2
1,095,000
*SOLD
16V2
3
2
1,039,000
965,000
02/10/16
* $ reduced
* new sale
* new listing
Figures from Realtors Association of Maui
TOURISM and TRAVEL
According to a report released by Hospitality Advisors hotel revenue was up 6% across the state in 2015.  However, Maui saw the largest increase, a jump of 9.7%.  So how about visitor spending? Eugene Tian, chief economist for the state Department of Business,Economic Development and Tourism, took look at a 30 year span in which average growth between 1984 and 2014 ... was close to 1%.  However in 2015, visitor expenditures grew to 2.1%
                                             

                                                                       
The number of visitors strongly correlates with economic conditions of the visitor's home market. Growth in visitor arrivals from the U.S.Mainland, China, and Korea will offset a significant decline in Japanese visitor arrivals and spending, due to the unfavorable exchange rate for the Japanese yen.

Hotel occupancy statewide was down at Hawaii hotels last week.  Hotel occupancy was 79.7%, a 5.4% decline from the same week a year ago, while the statewide average daily rate fell 2.3% to $239.67.   Maui hotels were 82% occupied last week with the highest daily rate among the Islands of $320.21.  If you're like me and have your unit in a rental program when you're not actually using it, then you're probably well aware of the worries that go along with wondering if you're making enough money on the unit or whether your unit is getting enough bookings. Truthfully, I got sick of rental pools - even tried renting it out by myself - but now I sleep through the night just fine thank you.  And that's because I placed my vacation rentals with Maui Beachfront Rentals.  I do get the best bang for my buck.  And the folks who stay in my rentals come back. Oh yes, lots of repeat visitors and referrals. What I don't get is any hassle. You should check 'em out yourself MBR.

Hawaii Travel
Island Air will stop flying to Lanai at the end of this month, but Ohana by Hawaiian will jump into that void with daily flights to Lanai in May. Meanwhile Island Air resumed service to Kauai and will increase the number of flights starting next month. Schedule as of April 1st: 

Monday: 7 daily roundtrip flights
Tuesday - Thurs: 6 daily roundtrip flights
Friday - Sunday: 8 daily roundtrip flights

A lot of travel talk surrounds the 'land down under'. Hawaiian Airlines and JetBlue have teamed together to oppose an American Airlines-Qantas Airline joint venture which would open up more flights between Australia, New Zealand and the U.S.  United Airlines has inked a revenue-sharing agreement with Air New Zealand, offering more options flying from the United State to New Zealand.  Still, Hawaiian Airlines is eyeing the start of flights from Honolulu to Melbourne as part of their next step to expanding in Australia.  Qantas already operates flights between Hawaii and Melbourne.   In fact, competition from Hawaiian Airlines was cited as one of the reasons that Australia's Jetstar will cancel its Brisbane-Honolulu flights in October. Jetstar's Honolulu-Sydney and Honolulu-Melbourne flights will continue.
     MORTGAGES
The Federal Reserve announced last Wednesday that is will not raise interest rates as quickly as they had originally anticipated.  I'll turn it over to Dean Rathbun of Avis Mortgage to explain the details. Dean shared that the Fed dimmed its outlook as the economy showed signs of slowing.  This means short-term rates will stay stead. Originally it was thought that The Fed would increase rates 4 times this year.  But Dean says now its only anticipated twice this year.  The initial increase occurred in December 2015.  By the end of this year, the rate will likely rise to 0.875%.  Officials are guesstimating June as the next probable time for a slight increase.
GREEN
The head of the state's Energy Office says that Wave Energy and Ocean Thermal Energy Conversion, or OTEC are 2 resources that will bring the state closer to its 100% renewable energy goal by 2045. Wave Energy is being tested by the Marine Corps off Kaneohe, and there is a planned 1-megawatt OTEC plant in Kailua-Kona.  The world's largest operational OTEC plant is already in Kona generating 100 kilowatts of sustainable, continuous electricity - enough to power 120 Hawaii homes annually.     Progression Hawaii Offshore Wind Inc., has been granted a federal lease for their 400-megawatt, $1.6 million Offshore Wind Farm in Hawaii waters.  This project has the potential to supply Oahu with 25% of its electricity needs.

Hawaii's Transportation Energy Plan, which aims to reduce gas and diesel usage in the state, should be unveiled by the end of this year.  The transportation sector accounts for more than 60% of energy consumer in Hawaii.  Air transportation uses the largest portion - 40% - while trucks, buses and cars consume roughly 20%.   One strategy being considered is building infrastructure for hydrogen-fueled vehicles, such as the Toyota Mirai, which is expected in the islands soon.
Kite Festival
                             
MAUI HAPPENINGS

Pioneer Inn Courtyard (808) 276-4201
"An Evening with Mark Twain" 3/25, 4/15, 4/29, 5/20 
"An Evening with Albert Einstein" 4/8, 4/22, 5/6, 5/27

Maui OnStage  tickets
4/2-3: Maui Chamber Orchestra Spring Concert
4/9: 2016 Maui OnStage Annual Sneak Peek Extravaganza
4/22-5/8: Inherit The Wind

Maui Arts & Cultural Center tickets 
4/2: Jane Hirshfield   poetry
4/8: Girls Guns & Glory   country music
4/9: Ron Artis II & Thunderstorm  acoustic/harmonies
4/10: Mana: What is Sacred    talk
4/14: Christopher K Morgan & Artists: POHAKU   hawaiian dance
4/23-24: Maui ChoralArts - A Night At The Movies
4/24: Harlem Globetrotters
4/28: Justin Moore & Rodney Atkins   country
4/29: David Benoit "2 in Love"  grammy winner

Various Events
Now: Kapalua Wine and Food Festival Special Price Early Bird Tickets
4/15: Chinese Kite Festival  Wo Hing Museum   Front Street/Lahaina
4/16: Chinese Kite Festival Kekaa North Beach Open Space Park (Kai Malina Prkwy) Kaanapali
4/28-5/1: 1st Annual Maui County Carnival    War Memorial Complex  Wailuku


Until next month's update, I invite you to check out my website and to keep me in mind if you're looking to sell or perhaps add to your real estate portfolio. Remember I'm a Kapalua Golf Villa specialist, and I've been a full time Maui Real Estate Specialist since 1987. I have closed over $1.5 billion in Maui real estate sales, and I am available to you 7 days a week.

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